Little v. Commissioner
United States Tax Court
1. Sale of Culls From Breeding Herd -- Inventory -- Basis -- Eliminated From Opening Inventory. -- Petitioners used a unit-livestock-price method of inventorying their livestock, including that held for breeding purposes.
Read the full summary
1. Sale of Culls From Breeding Herd -- Inventory -- Basis -- Eliminated From Opening Inventory. -- Petitioners used a unit-livestock-price method of inventorying their livestock, including that held for breeding purposes. They must eliminate the inventory basis of breeding culls from opening inventory when culls are sold and long-term capital gain under section 117(j) is computed. 2. Net Operating Loss Deduction -- Reduction of Net Operating Loss Carryback by 50 Per Cent of Capital Gains of the Tax Year -- Sec. 122(c). -- Section 122(c) of the 1939 Code requires that a net operating loss…
1Opinion of the Court
OPINION.
Murdock, Judge:
The Commissioner determined a deficiency of $18,482.39 in the income tax of the petitioners for 1951. The parties state that the first issue is whether the petitioners, in computing long-term capital gains from the sale of breeding stock, may use a zero basis as the petitioners contend or must use the adjusted inventory basis as the Commissioner contends. This statement is inadequate and misleading. The only other issue is whether 50 per cent of the 1951 net long-term capital gains which escaped tax is to be subtracted from the 1952 net operating loss carryback in…
2Cases cited4 opinions
- Frank Scofield, Collector of Internal Revenue v. A. J. Lewis and Grace M. LewisCourt of Appeals for the Fifth Circuit · 1958
- Bernard B. Carter (B. B. Carter) and Tommie Velma Carter, Husband and Wife v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1958
- Gibbs v. CommissionerUnited States Tax Court · 1959
- Appleby v. United StatesUnited States Court of Claims · 1953
3Cited by3 opinions
- United States v. Harold M. Ekberg and Secrie EkbergCourt of Appeals for the Eighth Circuit · 1961
- Andrew Little, Jr., and Myrn Little v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1961
- Little v. CommissionerUnited States Tax Court · 1960